The Dutch government has set aside €100 million ($106.7 million) in subsidies for the deployment of battery storage in addition to PV projects. The funds are part of a €416 million subsidy program announced last year to reduce congestion on the electricity grid.
Authorities in the Netherlands have awarded €100 million in subsidies for the deployment of battery storage in solar projects next year, as the country continues to struggle with a lack of energy flexibility and grid constraints.
Departing Minister of Climate and Energy Policy Rob Jetten announced the subsidy package as part of the national ‘Multi-year Climate Fund 2025 Program’ and this week presented the Spring Note 2024. This contains projects that the government wants to support in the coming years.
The scheme is expected to start on January 1, 2025 and end in 2034.
The financing is part of a €416 million subsidy program announced last year. The Dutch government said it would deploy funds from the 2022 climate package, with the subsidies to facilitate the deployment of 160 MW to 330 MW of battery storage.
In another step to reduce congestion, Dutch grid operator TenneT has proposed a new contract form with lower transport rates for batteries and other flexible capacity, with potential discounts of up to 65%.
This would make it easier to connect batteries to the Dutch electricity grid. In return, battery operators would be asked to help the grid operator reduce grid congestion by charging and discharging when necessary.
The new rate is expected this spring. According to research commissioned by TenneT, the introduction of the discount could lead to 2 GW to 5 GW of new battery power in 2030.
According to the latest estimates, more than 25% of roofs in the Netherlands are equipped with solar panels, accounting for the lion’s share of the country’s more than 20 GW solar energy fleet. According to national statistics agency CBS, the country had a cumulative installed PV capacity of 16.5 GW as of June 2022, with 3,803 MW added in 2021 and 3,882 MW deployed in 2022.
In February 2024, after a year of discussions and negotiations, the Dutch parliament decided to maintain the country’s net metering system. The program’s phase-out was intended to support the country’s distributed storage market.
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